Answer :
Tax swap Swapping two similar bonds to receive a tax benefit.
The process of using a capital loss on one asset to balance a capital gain on another to reduce the taxation of investment income is known as a "tax swap." In an effort to boost income without placing an excessive burden on taxpayers, it can also refer to a taxing body that lowers one sort of tax and raises another.
The amount of additional taxes you could have to pay as a result of these various tax swap kinds can vary. You may reduce a tax impact and stay out of trouble if you comprehend the distinctions and how they operate.
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